With your money not tied up in real estate your business can respond to opportunities in the market. In addition, your ability to borrow funds will not be as limited as with buying office space. You don't have to pay the full cost of the asset up front, so you don't use up your cash or have to borrow money. If you have not bought the asset outright, you won't have to worry about any overdraft or other loan taken out to finance the purchase being withdrawn at short notice, forcing early repayment · Easier to qualify. A strong credit rating will not be quite as critical for leasing as it would be for buying.
Second, most of the time, for a promising industry, there is no need for any government assistance to the initial firms. It would be much better if these firms could borrow from private lenders to cover their initial losses and repay these loans from future profits. If there are defects in the lending markets, then the government could extend loans. If the industry will create external benefits, such as training workers or new technologies, then the best government policy acts directly on the source of the external benefits (for instance, subsidies to training, or subsidies to research and development). Third, the argument could be misused because there are too many uncertainties, as indeed the industry could grow up, or not.
Conversely, an organisation (of internal customers) without external customers will cease to exist in any real sense. 2. Explain why increasing the lifetime value of a customer is an inexpensive way to secure the future of an enterprise and the four ways to do this. If an organisation already has a repeat customer and that customer’s lifetime customer value is estimated to be worth ‘X’, increasing the lifetime value of that customer can only be greater than ‘X’. Gaining a new customer can, however, be costly.
The benefits of accrual basis accounting include equal distribution of expenses paid in advance and in arrears. Cash basis accounting is beneficial to smaller businesses especially when the company does not have to maintain an inventory, there are no customer accounts of returns, and when most of the sales are cash sales. This method of accounting is typically easier and cheaper to maintain. Although there are numerous benefits to both options the business must determine which method is best for them and that is usually based off the
Furthermore, all companies have capacity to compete. No switching costs and product differentiation raise the degree of competition because it is easy for them to go where the lowest prices are. This characteristic leads to price wars which is present in the industry. Industry growth is the only factor that lowers rivalry – growth is high with few stores opening so companies do not need to compete for market share. Power of Suppliers – Low There is low supplier concentration relative to the industry they sell to and a single supplier does not account for a large part of a retailer’s business.
Hiring contract and temporary employees may be very beneficial for business. Companies benefit by not having to be responsible for recruiting and testing employees but at the same time have staffing for their peak needs and flexibility to let temporary workers go when they are no longer needed. Whether contract and temporary employers are good for business depends largely on the type of the business. For example, a productions factory will certainly benefit by hiring temporary workers. The use of temporary workers helps the business to maintain staffing flexibility and reduces hiring costs.
In our current economic climate, the Keynesian model of economics is more accurate. Business owners operate their business outside of government control and without much thought to the economic situation. Their goal is to build revenue and raise net worth of their company. With this being said, prices are in fact “sticky”. Even though the prices will lower of time, companies will take advantage of the recession, knowing that consumers still require their goods, no matter if it falls outside their budget or not.
Ebay could build regional distribution centers where these third-party retailers would be able to store their products in the interim period for a fee. This presents a dual advantage as brick-and-mortar retailers do not have the distribution network that Ebay has and so being able to store their products at Ebay facilities will minimize shipping costs and save money for the end customer. And by connecting end customers with smaller retailers Ebay will benefit by opening up these retailers to greater exposure while earning a profit from lead generation rather than commission. Ebay must also modernize its operations to ensure its survival in the e-commerce space. An effective way Ebay could improve operations is through using environmentally friendly packaging to ship products of its retail website Half.com and other retailers creating a
Being reactive or proactive is not just a mind-frame, it is also a potential business strategy depending on what the situation calls for. Reactive is when you react to situations affecting your business. For instance, say your competitor lowers the price of their goods. Your natural reaction is to cut down on prices too. This may seem like a viable solution at first, but reacting to situations the same way at all times may not the best solution for your business.
People tend to state “Time is money”, by having the RFID implemented for the company, reducing time spent searching on the misplaced parts could help them replace their time in doing something more productive for the company. As well as, not to mention it reduces the cost re-manufacturing the part if the part is in still inventory and not stolen due to the Anti-Theft Detection tool RFID tend to have. Which in return leads back to having more saving, larger revenue and the ability to grow and invest in future technology and product’s to better compete within their